IDBI reduces floating home loan interest rate by 0.50 %
On the heels of SBI and ICICI Bank, the largest lenders in the country, announcing a cut in their floating home loan rates, IDBI Bank too has reduced its flexible rates on housing loan by 0.50 per cent to 10.50 per cent.
While State Bank of India had cut interest rates on home, auto and personal loans by 0.5 to 1 per cent, ICICI Bank have reduced its rates by 0.25-0.50 per cent on home, car and personal loans. In September, HDFC too cut its rates on floating home loans by 0.5 per cent. Bank of Baroda and Axis Bank too pared their rates.
The reduction in home loan rates by leading banks comes at a time when overall credit growth has slowed down to no more than 24 per cent for April-September period compared to 31 per cent in the corresponding period last fiscal.
It is believed that degrowth in lending is due RBI's unleashing a harder interest regime as a part of its measures to tighten the liquidity situation in the country.
The housing loan rate has moved up from about 3 per cent in the past one year. However,it has been coming down for past three months.
The banks have also been increasingly clamouring for a softer interest regime ahead of RBI's half-yearly monetary review slated for October 30.
Top private bankers such as ICICI Bank Managing Director K V Kamth and HDFC's Deepak Parekh had repeatedly said in the recent past that rates had peaked.
Recently, Finance Minister P Chidamabram had asked bankers to cut interest rate to boost sagging demand in the sector like auto, paper etc. PTI JJ VRK NS NS 10152105 DEL
Source : Economy times
While State Bank of India had cut interest rates on home, auto and personal loans by 0.5 to 1 per cent, ICICI Bank have reduced its rates by 0.25-0.50 per cent on home, car and personal loans. In September, HDFC too cut its rates on floating home loans by 0.5 per cent. Bank of Baroda and Axis Bank too pared their rates.
The reduction in home loan rates by leading banks comes at a time when overall credit growth has slowed down to no more than 24 per cent for April-September period compared to 31 per cent in the corresponding period last fiscal.
It is believed that degrowth in lending is due RBI's unleashing a harder interest regime as a part of its measures to tighten the liquidity situation in the country.
The housing loan rate has moved up from about 3 per cent in the past one year. However,it has been coming down for past three months.
The banks have also been increasingly clamouring for a softer interest regime ahead of RBI's half-yearly monetary review slated for October 30.
Top private bankers such as ICICI Bank Managing Director K V Kamth and HDFC's Deepak Parekh had repeatedly said in the recent past that rates had peaked.
Recently, Finance Minister P Chidamabram had asked bankers to cut interest rate to boost sagging demand in the sector like auto, paper etc. PTI JJ VRK NS NS 10152105 DEL
Source : Economy times
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